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~~ • <br />Exhibit Page 27 <br />submitted to the State Engineer, pursuant to SB 89-120 and SB 93-260. Based on discussions <br />with the Division of Water Resources, a formal substitute water supply plan will not be needed <br />as the Home Ditch water right will be used directly to make up any potential depletions of <br />ground water. Further, no augmentation plan will be necessary, as shown below. <br />Based on preliminary calculations, the Home Ditch appears to have adequate water rights to <br />substitute for water lost due to mining from the Dolores River alluvial aquifer and the water from <br />the Home Ditch water right is from that same source. If it is determined that there is <br />appropriation of water, any injury will be compensated for or corrected in accordance with <br />Water Court determination. During actual operations, the overall mining plan and layout of the <br />pit is designed to minimize water exposure to the atmosphere and thus keep evaporation losses <br />to a minimum. <br />Table Gam. Water Balance Calculations for Evaporation from Line Camo Pit <br />Year Max open water <br />surface and historic <br />consum five uses Max water loss <br />(based on 55 in/yr) Additional acres w/o <br />irrigation and historic <br />consumptive use Balance Notes <br />All 5.9 A-ft 6.50 A/10.34 A-ft -4.44 O eratin loss <br />1 0.72 A/1.14 A-ft 3.3 A-ft 6.50 A/10.34 A-ft -1.14 2.45 of 6.50 A <br />2 1.06 A/1.69 A-ft 4.86 A-ft +7.39 A/11.75 A-ft -11.33 Add 7.39 A <br />3 2.05 A/3.26 A-ft 9.4 A-ft +1.95 A/3.1 A-ft -9.89 Add 1.95 A <br />4 2.05 A/3.26 A-ft 9.4 A-ft -9.89 <br />5 4.38 A/6.96 A-ft 20.08 A-ft +0.61 A/0.97 A-ft -0.18 Add 0.61 <br />6 11A/17.41 A-ft 50.19 A-ft 35.7 A/56.76 A-ft -23.98 <br />Note: "Year 6" is the reclaimed state, with three ponds and no irrigation except of newly reclaimed areas. <br />Colorado soil management and conservation rules will be implemented to protect surface and <br />ground water quality and improve watershed management. As part of reclamation, as <br />conditions warrant, ponds shall be lined using backfill materials to meet the State Engineer <br />Guidelines for Lining Criteria for Gravel Pits. The ponds are not considered as water storage <br />after reclamation, therefore, all inflow of water into the ponds from any source, shall be <br />removed by draining to the Dolores River. <br />8. Prohibited actions necessary to protect water systems: <br />None. The riverside buffer zone (outside the permit boundary) is established for a variety of <br />reasons, including protection of possible small wetlands areas, preservation of an uninterrupted <br />floodway and floodplain, and prevention of downstream water degradation due to <br />sedimentation. The mining is planned to prevent negative impacts on ground and surface water <br />and to make maximum use of existing water resources in accordance with state water law. <br />9. Wetlands information: <br />US Department of Interior, National Wetlands Inventory Map, Boggy Draw Quadrangle, 1998, <br />identifies only two wetlands within 500 feet of the proposed permit boundary and none within <br />the permit area. The two identified are on the banks of the river and are classified as "Riverine, <br />Upper Perennial, Unconsolidated Shore, Temporarily flooded. No impact is anticipated. <br />s Based on 1.59 acre-feet per acre. <br />Four States Aggregates, LLC 30 DEC 2000 <br />Application for Permit: Line Camp Pit FSA-LCP-D1-001 <br />